diff --git a/litellm/proxy/auth/user_api_key_auth.py b/litellm/proxy/auth/user_api_key_auth.py
index ea7bad2bf4..2495d33a5c 100644
--- a/litellm/proxy/auth/user_api_key_auth.py
+++ b/litellm/proxy/auth/user_api_key_auth.py
@@ -1909,7 +1909,7 @@ async def _reserve_budget_after_common_checks(
     end_user_object: Optional[LiteLLM_EndUserTable] = None,
 ) -> None:
     user_api_key_auth_obj.budget_reservation = None
-    if skip_budget_checks or _is_budget_reservation_disabled():
+    if skip_budget_checks:
         return
 
     from litellm.proxy.spend_tracking.budget_reservation import (
@@ -1931,10 +1931,6 @@ async def _reserve_budget_after_common_checks(
     )
 
 
-def _is_budget_reservation_disabled() -> bool:
-    return get_secret_bool("LITELLM_DISABLE_BUDGET_RESERVATION", False) is True
-
-
 def _should_skip_budget_checks(
     request_data: dict,
     route: str,
diff --git a/tests/test_litellm/proxy/auth/test_user_api_key_auth.py b/tests/test_litellm/proxy/auth/test_user_api_key_auth.py
index 8489a7b0f6..83e4788fa1 100644
--- a/tests/test_litellm/proxy/auth/test_user_api_key_auth.py
+++ b/tests/test_litellm/proxy/auth/test_user_api_key_auth.py
@@ -77,35 +77,6 @@ async def test_should_clear_stale_budget_reservation_when_budget_checks_skip():
     assert user_api_key_auth_obj.budget_reservation is None
 
 
-@pytest.mark.asyncio
-async def test_should_skip_budget_reservation_when_disabled():
-    user_api_key_auth_obj = UserAPIKeyAuth(
-        token="test_token",
-        spend=0.0,
-        max_budget=1.0,
-        budget_reservation={
-            "reserved_cost": 0.5,
-            "entries": [{"counter_key": "spend:key:test_token"}],
-        },
-    )
-
-    with patch.dict(os.environ, {"LITELLM_DISABLE_BUDGET_RESERVATION": "true"}):
-        await _reserve_budget_after_common_checks(
-            user_api_key_auth_obj=user_api_key_auth_obj,
-            request_data={"model": "gpt-4"},
-            route="/v1/chat/completions",
-            llm_router=None,
-            team_object=None,
-            user_object=None,
-            prisma_client=None,
-            user_api_key_cache=DualCache(),
-            proxy_logging_obj=MagicMock(),
-            skip_budget_checks=False,
-        )
-
-    assert user_api_key_auth_obj.budget_reservation is None
-
-
 @pytest.mark.asyncio
 async def test_should_not_reuse_cached_key_object_for_request_state():
     key_cache = DualCache()